SEATTLE (AP) — Aircraft assembly workers at Boeing factories in Washington, Oregon and California went on strike Friday, following union members. was largely rejected A temporary contract that increased wages by 25% over four years.
The strike involving 33,000 machinists will not immediately disrupt commercial aircraft, but was expected to halt production of Boeing’s best-selling planes, dealing another setback to an already damaged company. fame And Financial losses.
Boeing shares fell 2.2% in morning trading, bringing its year-to-date loss to 38.9%.
The strike began less than three hours after the regional branch of the International Union of Machinists and Aerospace Workers said 94.6% of voting workers had rejected their bargaining team’s recommendation to ratify the proposal. Agreement And 96% supported leaving the job.
After midnight, workers stood outside the Boeing factory in Renton, Washington, chanting “Historic deal my ass” and “Did you see the crappy housing prices?” Car horns blared and a boom box played songs like Twisted Sister’s “We’re Not Gonna Take It” and Taylor Swift’s “Look What You Made Me Do.”
Boeing workers chant and wave in support of a car after union members voted overwhelmingly to reject a contract offer and go on strike, Friday, Sept. 13, 2024, in Renton, Wash. (AP Photo/Lindsey Wasson)
Many workers were upset by the company’s recent decision to change the criteria for awarding annual bonuses. Many feel the wage offer is inadequate considering how much the cost of living has increased in the Pacific Northwest. Toolmaker John Olsen, 45, said he received a 2% raise during his six years at Boeing.
“The last contract we negotiated was 16 years ago and the company was based on wage increases that were 16 years ago,” Olson said. “They don’t even keep up with the cost of inflation going on now.”
Mechanics earn an average of $75,608 a year, not counting overtime, and that would rise to $106,350 by the end of the proposed four-year contract, according to Boeing.
However, the offer fell short of the union’s initial demand for a 40% pay rise over three years. The union wanted to restore traditional pensions that were cut a decade ago, but settled on increasing new Boeing contributions to employee 401(k) retirement accounts by up to $4,160 per worker.
Under the rejected contract, workers would have received a $3,000 lump sum and a reduced share of health care costs. In addition, Boeing met a key union demand by agreeing to build its next new airplane in Washington state.
The union’s local president, IAM District 751 President Joan Holden, said union members will be polled to decide which issues they want to emphasize when negotiations resume. Boeing responded to the strike announcement by saying it was “ready to come back to the table to reach a new agreement.”
“The message was clear that the tentative agreement we reached with the IAM leadership was unacceptable to the membership. We are committed to restoring our relationship with our employees and the union,” the company said in a statement.
Much less has gone on for Boeing This yearFrom A The panel blows out And in January it left NASA with a gap in one of its passenger jets Leaving two astronauts in space Instead of sending them home in a troubled Boeing spaceship.
Striking mechanics gather 737 maxAlong with the 777 jet and the 767 freighter, it is Boeing’s best-selling aircraft. The walkout will not halt production of Boeing’s 787 Dreamliners. Workers in South Carolina.
Thursday, Sept. 12, 2024, in Seattle, members of the International Space Station count votes on a contract offer from aerospace giant Boeing. (AP Photo/Stephen Brashear)
As long as the strike lasts, it will deprive the company of much-needed cash from supplying new planes to airlines. This will be another challenge for the new Boeing CEO Kelly OrtbergHe was tasked six weeks ago with turning around a company that has lost more than $25 billion over the past six years and is trailing European rival Airbus.
Ortberg made a last-ditch effort to salvage a deal that won unanimous support from union negotiators. A walkout and strike would jeopardize Boeing’s recovery and cast further doubt on the company in the eyes of its airline customers.
“For Boeing, it’s no secret that our business is going through a difficult period, because of the mistakes we’ve made in the past,” he said. “I know that by working together, we can get back on track, but a strike puts our shared recovery at risk and further erodes trust with our customers and our ability to decide our future together.”
According to union president Holden, Ordberg faced a difficult situation because machinists were bitter about stagnant wages and benefits they had paid since 2008 in pensions and health care to prevent the company from moving jobs elsewhere.
“It’s about honor, it’s about the past, it’s about fighting for our future,” Holden announced the strike.
Depending on how long the strike lasts, halting aircraft production could be costly for affected Boeing. An eight week strike in 2008Boeing’s longest since a 10-week walkout in 1995, costing the company $100 million a day in deferred revenue.
Before the tentative deal was announced Sunday, Jefferies aerospace analyst Sheila Kahyoglu estimated the 2008 strike would cost the company about $3 billion based on inflation and current aircraft production rates.
Another Renton toolmaker, Solomon Hammond, 33, said he was prepared to strike indefinitely to get a better deal.
Boeing’s offer “doesn’t fit the current climate. The wages are very low,” Hammond said. “I make $47 an hour and pay paycheck to paycheck. Everything costs more.”
